Posted on 10/06/2008 8:10:26 PM PDT by NormsRevenge
A massive $8.4 billion homeowner rescue plan announced Monday by the Bank of America will provide some relief for an estimated 125,000 Californians who are having trouble making payments on sub-prime loans and other risky mortgages from Countrywide Home Loans.
Bank of America bought Countrywide for $4 billion July 1 after the Calabasas-based home loan giant, among the largest sub-prime lenders in the state, collapsed under the weight of mounting defaults and foreclosures.
The bank's "Home Ownership Retention Program for Countrywide Customers'' was devised by California and 10 other states to settle predatory lending lawsuits filed against Countrywide. The plan could also set a precedent for other banks whose books are weighed down by defaulting mortgages.
"This is going to help some families,'' said California Attorney General Jerry Brown, "but the overall economy is in hands of God at this point.'' Brown helped lead the settlement negotiations.
The program allocates up to $3.5 billion to help California Countrywide borrowers lower their interest rates, a figure that assumes every borrower participates. Nearly 400,000 customers of Countrywide will be eligible nationwide.
The bank said the program is for borrowers who are, or who are likely to fall seriously behind on their loans as the result of loan features such as interest rate resets or payment changes. For some borrowers, interest rates could go as low as 2.5 percent. The program includes suspension of foreclosures, reduced interest payments and for select borrowers, reduction of principal balances.
(Excerpt) Read more at mercurynews.com ...
“This is going to help some families,’’ said California Attorney General Jerry Brown, “but the overall economy is in hands of God at this point.’’ Brown helped lead the settlement negotiations.
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Why in God’s good name, Mr. Brown, would anyone want to put a Democrat in control of the overall economy?
Hasn’t your party done enough damage already?
in the hands of dems,, ugghh.
Good God. How do I get my principal balance reduced? I've been struggling to pay my mortgage on time for 25 years, have gone without many niceties in life to avoid debt and have never missed a single mortgage payment. This just really pisses me off.
Rush was describing how new bailout rules could create a federal bureaucracy to do the very same thing at the national level. Except the program would only be open to Democrat voters, not Republicans. I think the latter part was tongue in cheek, but I'm sure the Federal Mortgage Authority would find a way to make this come true.
Thank you for saying what I’m feeling. My anger was too great for me to express my opinion. ;-)
Since 60% of the sub-prime loans went to “undocumented” immigrants, I see Bank of America is still doing all they can to lend to the Illegals amongst us.
Solid homeowners with equity don't vote democrat.
I watch my neighbors buy boats, RV’s, four wheelers, and ton's of other “toy's”. My kids ask me why we don't have them and we tell them those people are living beyond their means and we won't do that.
I'm beginning to think we were the idiots. /s
1) Politicians that coaxed/bullied the market to sell homes to folks who couldn't afford them.
2) The market which gladly packaged slick instruments and sought out its victims
3) The uneducated who bought the homes they couldn't afford
4) The race/culture posse who seized their fair share of the American dream.
5) The greedy investors that bet the margin with no intentions of occupancy
6) The oh so sophisticated crooks who repackaged the bad paper, painted lipstick on it and sold it to willing and greedy bankers in the rest of the world.
7) Politcians who then stole from tax payers to keep the race/culture posse happy and in a voting mood.
I’m with you. We do did without and sacrificed in order to afford a home in the first place, and we do without and sacrifice in order to keep it...and we are the ones being penalized while those that sacrificed NOTHING are getting a free ride and we get to pay the bill. There goes my blood pressure again:(
I am with you-almost too angry for words. If I had money in a bank that did this I would close my account pronto (a little undocumented lingo).
In addition to giving the finger to people who are paying, their mortgages, they are keeping the market artificially high. Prices were way out of line with incomes because of these fake loans creating a large pool buyers. My kids have been totally locked out of the housing market, living in small apartments trying to save for THEIR dream. This could have been an opportunity for young people finally to enter the home ownership market.
(Obama youth-you are paying for Obama’s dream and being robbed of your own). I may move in with one of these people.
You know what? It seems to me that if the bank is going to lower interest rates for those folks they should also lower them for the rest of us.
And I think if they don’t we should sue them. That is the first time I have ever threatened that in my life, but enough is enough!
RE: “I am with you-almost too angry for words. If I had money in a bank that did this I would close my account pronto (a little undocumented lingo).”
AGREE! I have a big account with B of A, fairly recent after I had to get money out of another failing bank. Now this! Whoa! My first thought when reading the story was “Not with MY money you don’t!” I am sick to death of seeing these jerks living in homes they never had any business getting into, receiving financial breaks now while others struggle along.
Going to CLOSE that blasted B of A account tomorrow!
Those that are bad, forgive them … those that are good … suffer and absorbe those that are bad. EEEEEGGGGGEEEE gads. My anger cannot be absorbed by any political absolution.
Not all mortgages amortize in the same way...For some borrowers who are chronically late with their payments, the mortgage can accrue interest and over time the balance would INCREASE rather than decrease, sometimes adding thousands and thousands to the morgage balance...THAT is a real abuse of sub-prime lending..terrible..
Is that figure for BOA's sub-prime loans, or for all sub-primes in the US?
Is there documentation about the loans to illegals as to how many there are etc?
Good idea. There must be SOME law that would relate - equal treatment under (contract) law??? Maybe a “class” action suit since these people seem to want to play the CLASS warfare games. If the good guys don’t start fighting fire with fire soon, they won’t have any leverage.
What is that quote? Something like “If you don’t stand up and fight while you still can then eventually you will be forced to fight when you are bound to lose. The actual quote says it much better.
Another one I like: “I understand that I am here for others. But what are the others here for?”
If that happened in large numbers it would at least make them know someone is paying attention. Enough IS Enough.
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